It's a sad day at Telltale Games. The studio quickly rose to fame and popularity with its narrative-driven games, earning the right to bring many famous licensed properties to the world of gaming. Unfortunately, some of their recent releases haven't been as successful as Telltale had hoped, leading to financial woes for the company. Today that manifested in a big way.

While the story is still developing across multiple websites and social media platforms (with many employees and ex-employees speaking out), we can safely say Telltale has been hit by
massive layoffs. According to The Verge, the studio is now working with just a skeleton crew of around 25 employees, down from 250. Those who were laid off allegedly received no severance.

The few remaining employees are sticking around to finish
The Walking Dead Season: The Final Season, but that will likely be the end of Telltale. According to US Gamer, previously announced projects like The Wolf Among Us Season 2 and Stranger Things will be canceled, and Telltale will soon close its doors. Telltale has not yet issued any official statement on the situation.

Update: Telltale Games has issued a statement confirming that the majority of the studio has been let go with only 25 employees remaining. The status of those remaining employees (and in-development titles) after completion of The Walking Dead Season: The Final Season was not confirmed. Telltale will issue further information at a later date.

Update 2: According to the latest information from US Gamer, the initial indication that The Walking Dead: The Final Season would be completed was incorrect. Instead, it is now being reported that the remaining employees are working on the Minecraft Story Mode project for Netflix. It seems that Netflix is looking for a new partner for the planned Stranger Things project.